Another proposed health system merger is poised to further reshape Minnesota’s healthcare industry. Bloomington-based HealthPartners and Duluth-based Essentia Health announced Tuesday that their respective boards of directors have approved a merger plan. If approved by regulators, the merger of the two nonprofit health systems will be complete by early next year. The new organization would take the name HealthPartners and have about 45,000 employees at dozens of hospitals and clinics in Minnesota, Wisconsin and North Dakota. It would be one of the largest health systems in the region. “This combination aims to do more for the people and communities that count on us,” HealthPartners President and CEO Andrea Walsh said in a statement announcing the merger. MPR News helps you cut through the noise and build shared understanding. Please increase your support for this public resource and keep trustworthy journalism accessible to all. “HealthPartners and Essentia Health share the belief that everyone deserves access to high-quality care and coverage, close to home and focused on their needs,” Walsh said. “Together, we can leverage the strengths of both organizations to improve health, expand access and create a stronger future for the communities we serve.” Dr. David Herman, CEO of Essentia Health, said the two organizations “share similar missions and values, deep roots in this region and a focus on improving health and well-being.” live, wherever they call home,” Herman said in a statement. It is the third major proposed merger involving Minnesota health systems in 2026. South Dakota-based North Memorial Health and Sanford Health completed a merger earlier this year. And a proposed merger by California-based Allina Health and Sutter Health remains under review by state regulators. Mary’s Medical Center and Essentia Health employees gather for the grand opening of the new hospital in Duluth. Erica Dischino for MPR News | 2023 Speaking to reporters Tuesday afternoon, Walsh and Herman said the merger is necessary to address the challenges facing the broader healthcare sector, including rising healthcare costs and health insurance premiums, lower reimbursements and workforce shortages. “What we believe is that HealthPartners and Essentia together can combine complementary strengths to improve the affordability and quality of the healthcare experience, and navigating some of the industry trends that are challenging not just in Minnesota but across the country,” Walsh said. “That’s what other health systems are finding: that when you have complementary capabilities, we are stronger together,” Herman said. Herman described the proposed merger as if the two systems were leading, rather than reacting, to a healthcare environment that he described as “dynamic” and even “chaotic.” “We know that even though we are strong, our patients, our communities and our colleagues depend on us. And coming together when we are strong, working on things that we know are important, like access, affordability, getting the best care and the best care. HealthPartners and Essentia Health said Tuesday they have “complementary strengths in care delivery, health plan coverage, urban and rural community health, research, medical education and innovation.” They said the merger would give patients access to more medical expertise and specialists and give employees more career paths within the organization. Walsh would lead the combined organization, with Herman serving as president of operations for the combined clinical care group. HealthPartners and Essentia said their patients and members should not see any changes or interruptions in health care or insurance coverage. Walsh and Herman said there are no plans to close clinics or hospitals. For now, Essentia Health facilities will retain that brand. Herman said the plan is to convert them to the HealthPartners name at some point in the future, once the two systems are fully combined. The Minnesota Nurses Association issued a statement saying it has “serious concerns” about the merger plan, and the union also said its members who work at both health systems received no advance notice of the proposal before Tuesday’s public announcement. communities,” MNA President Chris Rubesch, a registered nurse at Essentia Health, said in a statement. “As control of health care is concentrated in fewer hands, we need to understand what patients and communities stand to gain, what they could lose, and who will be held accountable for those outcomes.” In a statement following Tuesday’s merger announcement, Minnesota Attorney General Keith Ellison said his office will gather public comments on the planned merger as it reviews the proposal. “The proposed health care consolidation requires scrutiny thorough,” Ellison said in a news release. “As we have done several times, we will conduct a thorough review of this potential acquisition to ensure it complies with the law and is in the public interest.” HealthPartners operates nine hospitals, including Regions Hospital in St. Paul, as well as dozens of clinics. It also offers health and dental insurance plans covering more than 1.5 million people. Essentia Health operates 14 hospitals and dozens of clinics in central and northern Minnesota, Wisconsin and North Dakota. In In 2025, Essentia Health was part of a proposed health system alliance involving Fairview Health Services and the University of Minnesota, but that proposal did not move forward. In 2022, Essentia had also explored a possible merger with Wisconsin’s Marshfield Clinic Health System, but later ended those discussions. Marshfield subsequently merged with Sanford Health.
